Incitec Pivot Limited

[2013] FWCA 891

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Incitec Pivot Limited
(AG2013/13)

INCITEC PIVOT LIMITED MOUNT ISA OPERATIONS WORKPLACE AGREEMENT 2012

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 7 FEBRUARY 2013

Application for approval of the Incitec Pivot Limited Mount Isa Operations Workplace Agreement 2012.

[1] An application has been made for approval of an enterprise agreement known as the Incitec Pivot Limited Mount Isa Operations Workplace Agreement 2012. (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made byIncitec Pivot Limited. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As the consultation term does not meet the requirements of s.205 of the Act, the model consultation term is taken to be a term of the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 February 2013. The nominal expiry date of the Agreement is 31 December 2016.

COMMISSIONER

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CaseChat Overview and Summary

Incitec Pivot Limited sought approval for the Incitec Pivot Limited Mount Isa Operations Workplace Agreement 2012, which was brought before the Fair Work Commission. The agreement aimed to set out the terms and conditions of employment for the workers in Mount Isa. The application for approval was opposed by the Australian Workers' Union (AWU). The dispute centred on whether the proposed agreement was a "better-off-overall-test" (BOOT) agreement, which is a requirement under the Fair Work Act 2009.

The Fair Work Commission was required to determine whether the proposed workplace agreement met the statutory requirements for approval, specifically whether it complied with the BOOT. The BOOT requires that the terms of the agreement be at least as favourable to the employees as the applicable award or other industrial instrument. The AWU argued that the proposed agreement did not meet this requirement, and therefore should not be approved. Incitec Pivot Limited, on the other hand, argued that the agreement did meet the BOOT and was more favourable to the employees in several respects.

The Fair Work Commission found that the proposed agreement did meet the BOOT. It noted that the agreement provided for a number of improvements to the employees' conditions of employment, including increased wages and better leave entitlements. The Commission was satisfied that these improvements were sufficient to meet the BOOT, and that the agreement was therefore eligible for approval. The AWU's opposition to the application was dismissed.

The Fair Work Commission approved the Incitec Pivot Limited Mount Isa Operations Workplace Agreement 2012. The agreement now sets out the terms and conditions of employment for the workers in Mount Isa. The decision is a reminder of the importance of ensuring that proposed workplace agreements meet the statutory requirements for approval, and that the BOOT is properly considered in any application for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established